We are really proud to present to you the powerful Heiken Ashi Smoothed MT4 Indicator. The Heiken Ashi candlestick actually looks like the Japanese candlestick, but the benefits of using the Heiken Ashi Smoothed indicator is that it’s showing great trends and eliminates a lot of noise at the same time. There are a lot of traders that use this as their primary indicator, meaning they take entries and exits based off what these bars tells them. The general rule with the Heikin Ashi Smoothed indicator is when you get two bars in the same color than you are trading in that direction and you exit when there are two reversal bars going against you.
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Unlike the traditional candlestick chart which plots the actual open, close, high and low the Heiken Ashi candlestick are independent candles in the sense that they are calculated based on the above formula and use as inputs information from previous candles which makes them slower and “lagging” behind. Because of the nature of the Heiken Ashi candles as they use an average price it may be the case that Heiken Ashi candlestick does not reflect the most recent price and that’s one of the reasons why it may not be recommended for scalping.
As the name of the indicator suggests it makes the trend smoother and easier to spot and that’s why it’s more suited for trend traders. One of the key characteristics the Heiken Ashi Smoothed candlestick is that usually both in an uptrend or downtrend the candles have very little, but in most cases no lower shadows while it poses extreme upward shadows.
Heiken Ashi Smoothed MT4 Indicator Trading Rules
The Heiken Ashi Smoothed MT4 Indicator is really an indicator designed as a stand-alone trading system but in order to improve the performance of the indicator we’re going to add the 200-day Moving Average because the 200 MA is considered to represent one of the most trusted moving averages. Going forward, we’re going to lay down an effective trading system using the Heiken Ashi Smoothed indicator in combination with the 200-day MA.
BUY and SELL Trading Rule
Only buy above the 200-day MA once you have two Heiken Ashi candles pointing to the upside. Conversely, we’re going to sell only below the 200-day MA once we have two Heikin Ashi candles pointing to the downside.
Stop Loss
For stop loss orders we’re going to use the traditional candlestick prices in combination with the Heiken Ashi candles. In this regard for buy setups we put our SL below last candlesticks where we had red Heiken Ashi candles and for sell setups, we put our SL above last candlesticks where we had blue Heiken Ashi candles.
Take Profit Rule
Take profit once we break in the opposite direction of the 200-day MA.
Time Frames
Technically speaking, you can use this indicator for all time frames. However, the shorter the time frame, you will see more fluctuation and possibly more whipsaw which may cause small losses that can eat up your portfolio quickly. We recommend that you use higher time frames like the 4H for better consistency.
Heiken Ashi Strategy Video
Heiken Ashi Strategy Video
Heiken Ashi Smoothed MT4 Indicator Download
We have provided this powerful trend trading indicator to you at no cost. We humbly request for your help to spread the word by sharing on one of the social platforms below. To unlock the download link, you just need to share this page to help us achieve our goal of helping more traders out there.
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Leave us a comment below to let us know your thoughts on this indicator. If you like this indicator, you might like see other indicators that we have carefully selected that will help you in your trading journey.
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Very good system to use.
Yes indeed. This is a good indicator and system to use.
And it’s not too difficult to learn too.